LDI Lithoquest Resources Inc

MONCTON, NB, March 20, 2012 /CNW/ - Landdrill International Inc. ("Landdrill" or the "Company"), announces two new financings along with the restructuring of an existing debt obligation geared at improving the Company's cash position. In the first financing the Company has arranged for an $8 million loan (the "Bridge Loan") and the net proceeds will be used to temporarily retire their current operating line of credit with the net $4 million being an increase to cash, thereby providing the necessary support for the significant growth to the Company's working capital assets.  Pursuant to the terms of the Bridge Loan, the Company will provide the new lender with security interests on its assets.  As consideration, the Company has agreed to issue the lender 4,600,000 common share purchase warrants whereby each warrant permits the lender to acquire a common share in the capital of the Company at an exercise price of $0.24 per share for a period of 36 months for the date of issuance.  After the anniversary of the closing date, Landdrill may repay the Bridge Loan at any time without penalty. The Company has agreed to issue to the broker of the Bridge Loan $160,000 worth of common stock of the Company based on the 10 day volume weighted average price ("VWAP") of its Shares on the TSXV. The Company has restructured the terms and security of an existing equipment lender (the "Equipment Loan").  In consideration for the amendments to their security agreement, Landdrill will increase its monthly repayment amount for the remainder of the term of the Equipment Loan and the Company has agreed to issue the Equipment Loan lender $100,000 of the Company's common stock, based on the 10 day VWAP its shares on the TSXV. In the second financing, the Company has secured a $1.2 million working capital loan with a Canadian equipment lender.  The Company expects to close this loan prior to the end of March. Ron Goguen, Sr., the President and CEO of Landdrill said, "The new financings ensure that Landdrill has sufficient cash in order to comfortably operate at its current record level of activity.  After completing the current year, the Company will be positioned to re-instate their revolving line of credit and repay the Bridge Loan". The foregoing transactions from the first financing are expected to close on or about Tuesday, March 20, 2012 and are subject to TSXV approval in accordance with TSXV policy. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For a review of the Company's results, copies of Landdrill's financial statements along with the management discussion and analysis (MD&A) can be found on SEDAR (www.sedar.com). About Landdrill Landdrill is a growth oriented international drilling company with a focus on the metals and minerals industry. The Company continues to explore opportunities for growth in key markets, either through establishment of new branch offices or through acquisitions as opportunities arise.  Landdrill has also modernized its drilling rigs to provide superior results to clients.  The Company has 48 drills with full branch operations in Canada, Mexico and Mongolia. Landdrill is a forward looking company that has drilled all over the world.  Our people have drilled at altitudes over 15,000 feet and in temperatures ranging from -50 degrees Celsius to +50 degrees Celsius. We view all our customers as partners in every venture because we know that their success ensures our future! We offer customized drilling programs to meet your every need and we always look forward to our next challenge. For detailed information on Landdrill International Inc., or to request a bid submission for your project worldwide, please visit our website at www.landdrill.com. Forward-looking information This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Landdrill International Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all terms of the contracts will be fulfilled in their entirety, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include commodity prices, availability of personnel, materials and equipment, actual performance of equipment and processes relative to specifications and expectations, unanticipated environmental impacts and continued availability of capital and financing and general economic, market or business conditions. These risks and uncertainties are discussed in the Company's regulatory filings available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. LANDDRILL INTERNATIONAL INC. CONTACT: Ronald Goguen, Sr.President and Chief Executive OfficerLanddrill International Inc.Telephone: (506) 388-8961www.landdrill.comRenmark Financial Communications Inc.John Boidman: jboidman@renmarkfinancial.comArash Shahi: ashahi@renmarkfinancial.comTelephone: (514) 939-3989 or (416) 644-2020www.renmarkfinancial.com

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